Capital Research Global Investors Cuts Stake in Royal Caribbean Cruises Ltd. $RCL

Capital Research Global Investors lessened its position in Royal Caribbean Cruises Ltd. (NYSE:RCL) by 25.6% in the 3rd quarter, Holdings Channel reports. The fund owned 19,256,502 shares of the company’s stock after selling 6,611,624 shares during the period. Royal Caribbean Cruises accounts for approximately 1.2% of Capital Research Global Investors’ holdings, making the stock its 18th biggest position. Capital Research Global Investors owned 0.07% of Royal Caribbean Cruises worth $6,231,042,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Evolution Wealth Management Inc. acquired a new position in shares of Royal Caribbean Cruises during the second quarter worth about $31,000. GGM Financials LLC acquired a new stake in Royal Caribbean Cruises in the third quarter valued at about $33,000. Financial Gravity Companies Inc. acquired a new stake in Royal Caribbean Cruises in the second quarter valued at about $38,000. Dogwood Wealth Management LLC boosted its holdings in Royal Caribbean Cruises by 318.8% in the 3rd quarter. Dogwood Wealth Management LLC now owns 134 shares of the company’s stock valued at $43,000 after purchasing an additional 102 shares in the last quarter. Finally, Physician Wealth Advisors Inc. boosted its holdings in Royal Caribbean Cruises by 38.1% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 214 shares of the company’s stock valued at $69,000 after purchasing an additional 59 shares in the last quarter. Hedge funds and other institutional investors own 87.53% of the company’s stock.

Insiders Place Their Bets

In other news, Director Maritza Gomez Montiel sold 1,385 shares of the company’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $327.18, for a total transaction of $453,144.30. Following the completion of the transaction, the director owned 12,849 shares of the company’s stock, valued at $4,203,935.82. This represents a 9.73% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Laura H. Bethge sold 7,854 shares of the company’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $326.21, for a total transaction of $2,562,053.34. Following the transaction, the insider directly owned 32,786 shares of the company’s stock, valued at $10,695,121.06. This trade represents a 19.33% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 1,967,319 shares of company stock valued at $626,681,935. Insiders own 6.95% of the company’s stock.

Analyst Upgrades and Downgrades

RCL has been the topic of several recent analyst reports. JPMorgan Chase & Co. increased their target price on Royal Caribbean Cruises from $368.00 to $371.00 and gave the stock an “overweight” rating in a research note on Monday, February 2nd. William Blair restated an “outperform” rating on shares of Royal Caribbean Cruises in a research note on Thursday, January 29th. Citigroup upped their price objective on Royal Caribbean Cruises from $332.00 to $398.00 and gave the stock a “buy” rating in a report on Monday, February 2nd. Tigress Financial increased their price objective on Royal Caribbean Cruises from $415.00 to $425.00 and gave the stock a “buy” rating in a research report on Friday, February 6th. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Royal Caribbean Cruises in a report on Friday, December 26th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, Royal Caribbean Cruises has an average rating of “Moderate Buy” and an average target price of $348.29.

Royal Caribbean Cruises Stock Performance

NYSE RCL opened at $290.96 on Tuesday. The company has a quick ratio of 0.16, a current ratio of 0.18 and a debt-to-equity ratio of 1.77. Royal Caribbean Cruises Ltd. has a fifty-two week low of $164.01 and a fifty-two week high of $366.50. The business has a fifty day moving average of $304.40 and a 200-day moving average of $301.83. The stock has a market cap of $78.71 billion, a price-to-earnings ratio of 18.64, a price-to-earnings-growth ratio of 0.91 and a beta of 1.87.

Royal Caribbean Cruises (NYSE:RCL) last posted its quarterly earnings data on Thursday, January 29th. The company reported $2.80 EPS for the quarter, hitting analysts’ consensus estimates of $2.80. Royal Caribbean Cruises had a return on equity of 45.06% and a net margin of 23.80%.The firm had revenue of $4.26 billion during the quarter, compared to analysts’ expectations of $4.28 billion. During the same quarter last year, the business posted $1.63 EPS. The firm’s quarterly revenue was up 13.2% compared to the same quarter last year. As a group, analysts predict that Royal Caribbean Cruises Ltd. will post 14.9 earnings per share for the current fiscal year.

Royal Caribbean Cruises announced that its Board of Directors has authorized a share repurchase program on Wednesday, December 10th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the company to repurchase up to 2.6% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s management believes its shares are undervalued.

Royal Caribbean Cruises Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, April 3rd. Investors of record on Friday, March 6th will be paid a $1.50 dividend. The ex-dividend date is Friday, March 6th. This is an increase from Royal Caribbean Cruises’s previous quarterly dividend of $1.00. This represents a $6.00 annualized dividend and a yield of 2.1%. Royal Caribbean Cruises’s payout ratio is currently 38.44%.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises (NYSE: RCL), operating as part of the Royal Caribbean Group, is a global cruise company that develops, markets and operates passenger cruise ships. The company operates multiple consumer-facing cruise brands that offer short- and long-duration itineraries and a range of onboard experiences. Its core activities include itineraries and voyage operations, guest services and hospitality, onboard food and beverage, entertainment and recreation programming, and the commercial activities needed to sell and support cruises through both direct and travel‑agent channels.

Royal Caribbean’s ships serve a broad set of geographies worldwide, regularly deploying vessels in the Caribbean, North America (including Alaska), Europe, Asia, Australia and South America.